VAT Taxable Person Manual

Issues to consider: agency and disbursements: what is an agent?

We use the term ‘agent’ to describe a person who acts for or represents someone else (the ‘principal’) with the consent of both parties. An agent arranges supplies of goods or services between the principal and a third party by:

obtaining goods or services for the principal (ie as a buying agent), or

finding customers for the principal to sell to (ie as a selling agent).

Agents are always involved with two supplies at any one time:

the supply between their principal and the third party, and

the supply of their own services (services of agency) to their principal, for which a fee or commission is usually charged.

Help us improve GOV.UK

Help us improve GOV.UK

To help us improve GOV.UK, we’d like to know more about your visit today. We’ll send you a link to a feedback form. It will take only 2 minutes to fill in. Don’t worry we won’t send you spam or share your email address with anyone.